Understand and Define Key Substantive Contract Provisions
March 23, 2020 —
Phillip L. Sampson Jr. & Richard F. Whiteley, Construction ExecutiveThe following contract provisions should be clearly understood before undertaking any construction project commences.
Force Majeure
Often referred to as an “Act of God,” a force majeure is an event, typically beyond the parties’ control, that prevents performance under a contract. To determine if a contractor need a force majeure clause in its contract, it should ask whether there may be instances where events beyond the contractor’s control could impact its contractual performance? If so, it will want this clause.
Courts currently treat force majeure as an issue of contractual interpretation, focusing on the express language in the contract. Consequently, the scope and applicability of a force majeure clause depends on the contract’s terms. Using broad language in a force majeure clause may help protect against unforeseen events. But to the extent possible, parties should describe with particularity the circumstances intended to constitute a force majeure.
The law relating to force majeure also fairly consistently provides that parties cannot avoid contractual obligations because performance has become economically burdensome. Courts have refused to apply force majeure clauses where an event only affects profitability. Recent attempts to categorize tariffs on construction materials as a force majeure have failed. Unless a tariff or tax is specifically listed as a force majeure event, it is unlikely to constitute a force majeure because it only affects profitability.
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Phillip L. Sampson Jr. & Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Haight has been named a Metropolitan Los Angeles Tier 1 “Best Law Firm” and Tier 2 for Orange County by U.S. News – Best Lawyers® “Best Law Firms” in 2023
November 21, 2022 —
Haight Brown & BonesteelHaight Brown & Bonesteel LLP is listed in the U.S. News – Best Lawyers® (2023 Edition) “Best Law Firms” list with metro rankings in the following areas:
Los Angeles
- Metropolitan Tier 1
- Insurance Law
- Product Liability Litigation – Defendants
Orange County
- Metropolitan Tier 2
- Product Liability Litigation – Defendants
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Haight Brown & Bonesteel
Arizona Supreme Court Holds a Credit Bid at a Trustee’s Sale Should Not be Credited to a Title Insurer Under a Standard Lender’s Title Policy To the Extent the Bid Exceeds the Collateral’s Fair Market Value
March 01, 2017 —
Richard H. Herold - Snell & Wilmer Real Estate Litigation BlogThe Arizona Supreme Court recently addressed what impact, if any, a lender’s credit bid at an Arizona trustee’s sale has on an insurer’s liability under Sections 2, 7 and 9 of the standard’s lender’s title policy (“Policy”), holding in Equity Income Partners, LP v. Chicago Title Insurance Company, 241 Ariz. 334, 387 P.3d 1263 (February 7, 2017) as follows:
1. Section 2 of the Policy, entitled “Continuation of Insurance,” not Section 9, entitled “Reduction of Insurance; Reduction or Termination of Liability,” applies when a lender acquires property at a trustee sale by “either a full- or partial-credit bid” since Section 2 directly addresses the existence and amount of coverage in such circumstances. Id. at 1267.
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Richard H. Herold, Snell & WilmerMr. Herold may be contacted at
rherold@swlaw.com
Ex-Corps Worker Pleads Guilty to Bribery on Afghan Contract
July 26, 2017 —
Tom Ichniowski - Engineering News-RecordA former Army Corps of Engineers contracting official has pleaded guilty to a federal charge that he took $320,000 in bribes from a contractor in exchange for help on a U.S. road contract in Afghanistan, the Dept. of Justice says.
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Tom Ichniowski, ENRMr. Ichniowski may be contacted at
ichniowskit@enr.com
The Private Works: Preliminary Notice | Are You Using the Correct Form?
August 20, 2019 —
William L. Porter, Esq. - Porter Law GroupThe Private Works – Preliminary Notice form which contractors, subcontractors and suppliers had become accustomed to using for many years changed in 2004. Despite this change in law, many in the construction industry have still not started using the correct new form. Changes in the law, championed by the American Subcontractors’ Association, gave a significant new benefit to subcontractors and suppliers by giving the subcontractor or supplier some expectation of actually receiving notice of when a Notice of Completion or a Notice of Cessation has been recorded on many private works projects. The law also changed the language of the California Preliminary Notice that subcontractors and suppliers must use to protect their mechanics’ lien, bond claim and stop payment notice rights. If Owners do not send out the Notice of Completion as required by law they incur a diminishing of the protections afforded to them when they record a Notice of Completion or Notice of Cessation on many private works projects.
The revised law requires private project owners to notify all subcontractors and suppliers within 10 days after recording a Notice of Completion or Notice of Cessation that a Notice of Completion or a Notice of Cessation has actually been recorded. In order to receive such notice, the subcontractor or supplier must properly serve the new form of Preliminary Notice. If this properly occurs and the private project owner provides the required notice, then the subcontractor or supplier will have 30 days to record a Mechanics’ Lien. However, if an owner under such circumstances fails to properly notify a subcontractor or supplier within 10 days after recording a Notice of Completion or Notice of Cessation, then the Subcontractor or supplier will have 90 days to record a Mechanics’ Lien. The details of the law can be found in California Civil Code sections 8190, 8414 and 8416.
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William L. Porter, Esq., Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Window Manufacturer Weathers Recession by Diversifying
October 28, 2011 —
CDJ STAFFAmerican Openings, a Tuscon-based window manufacturer, has responded to the loss of its sales of windows for new home construction by moving into new markets. The Arizona Daily Star reports that American Openings used to see providing windows for new homes as half their business. Now, Tom Regina, the founder and president says “single family is just dead.”
Their products are insulated windows, designed to comply with Energy Star standards. Without new homes being built, now the company is focusing on homeowners and building owners looking for more energy efficient windows. As the windows have two or three panes and special coatings, homeowners using them are eligible for tax credits.
One of their newer products combines their energy-saving coatings with “break resistant” glass. The article notes that the windows repel “all but the most determined burglars.” However, the company is still awaiting special equipment to cut the glass.
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CDJ’s #6 Topic of the Year: Does Colorado Need Construction Defect Legislation to Spur Affordable Home Development?
December 31, 2014 —
Beverley BevenFlorez-CDJ STAFFThe question involves whether a Colorado law passed in 2005 has made it too easy for homeowners to sue developers for construction defects, allegedly causing a decline in condominium building in the state. The Construction Defect Journal became a forum for this lively debate with two prominent, Colorado, construction defect attorneys providing their views on the subject:
Jesse Howard Witt, of the Witt Law Firm, published “Colorado Mayors Should Not Sacrifice Homeowners to Lure Condo Developers.”
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In response, James M. Mulligan of Snell & Wilmer, LLP presented his perspective in, “Are Construction Defect Laws Inhibiting the Development of Attached Ownership Housing in Colorado?”
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The city of Lakewood did not wait for the state, but instead passed its own ordinance, which “gives developers and builders a ‘right to repair’ defects before facing litigation and would require condominium association boards to get consent from a majority of homeowners — rather than just the majority of the board — before filing suit,” according to John Aguilar’s piece in The Denver Post.
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Lewis Brisbois Launches New Practice Focusing on Supply Chain Issues
April 04, 2022 —
Sean Shecter - Lewis BrisboisFt. Lauderdale, Fla. (March 31, 2022) - Lewis Brisbois has formed a Supply Chain Due Diligence Practice that will assist clients in navigating the issues they continue to face as a result of the many forces currently impacting the global supply chain. The attorneys who comprise Lewis Brisbois' new practice will advise companies on the complex and multi-disciplinary legal matters arising from, among other things, environment, social, and governance (ESG) policies, trade bans (i.e., "deglobalization"), and the U.S. government's efforts to emphasize "green investigations." Fort Lauderdale Partner Sean P. Shecter, a former federal prosecutor, will chair the new practice.
“Companies need to be aware that several methodologically distinct forces are reshaping the global supply chain. Most law firms are not paying attention to this critical area," Mr. Shecter noted when discussing why the firm formally established this practice. "Lewis Brisbois recognizes that companies need trustworthy legal advice to navigate these multi-faceted legal issues, and so it has established this Supply Chain Due Diligence Practice and resource page. With its expansive network, Lewis Brisbois is well-positioned to help companies navigate and address these complex and multi-disciplinary legal issues.”
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Sean Shecter, Lewis BrisboisMr. Shecter may be contacted at
Sean.Shecter@lewisbrisbois.com